bituach_leumi

Why you need to update your address on your Israeli I.D. card

Moshe

Many people move, sometimes temporarily, whatever the circumstances are, according to the law, an employee needs to update his/her employer within 7 days of the change (i.e. fill out the changes on your 101 tax form).
Notifying utilities and Municipality, etc can also be challenging, but many allow phone or email notifications. These are almost always done, as it’s in the person’s best interest, so they will recieve their mail, services (or stoppage of service). But people usually don’t have the time to go in to their local Ministry of Interior office and waste several hours in order to update their Israeli I.D. card (Teudat Zehut). People are working or studying and just do not want to be bothered. There should be some form of secure on-line form that can be updated with the relevant information, but that would be too efficient and some public sector employees might lose their jobs.

Well, the following is a completely true story that may make one reconsider taking the time off and updating their I.D. card:

My friend, Yossi lived with his parents and when he married, he moved with his wife to a different town. The town was a few hours travel from his parent’s house. He didn’t update his address on his I.D. card. He got a job in the new town and worked for the same employer for 3 years. One day Yossi gets a letter from Social Security (Bituach Leumi) saying he hasn’t paid social security for the past three years and failure to do so, as legally required by law, may result in fines or imprisonment.

Obviously, Yossi gets scared from the letter and shows up at the local Social Security office in the town where he lives. He brings with him his payslips from the last three years. On the payslips is Yossi’s full name, his Israeli I.D. number and his address of residence. Yossi shows the payslips to the clerk and to his astonishment he is told that the money that was deducted from his pay was not credited to his account because he does belong to this particular branch of Social Security, but rather in the town where his parents live !

The fact that all branches are connected via computer network and it seems just a silly beaurocratic issue, he was told that he needed to physically go into the local Interior Ministry office nad change his address and then travel to his former town, to the Social Security office and ask that his file be transferred to the new town. All his reasonable arguing to no avail. To top it off, while he is sitting in the Social Security office he gets a phone call from his wife who tells him that their car and some possesions have been confiscated by the Social Security office as collateral until he pays his due!

Needless to say, he had to take a day’s vacation and waste it on setting the records right with the authorities. After all is said and done, they actually refunded him 600 shekels that he was overcharged.

Food for thought.

 

 

Raise in employer’s social security contribution rates from Jan 2014

Moshe

Employer’s contribution rates towards Social Security (Bituach Leumi) for salaried employees, on the portion of salary over 60% of the average salary (currently 5,297 sh but due to be updated) will be 7% starting January 2014’s payroll (up until Dec 2013 it was 6.5%).

Bituach Leumi – Tax or benefit ?

Moshe

Many Olim do not understand why they need to pay Bituach Leumi and Health Tax from their salary. “I pay my health tax to Kupat Cholim, so this is a double tax” or “I have health insurance from abroad – I don’t need it, so can’t I just tell my employer to cancel it and not deduct it from my pay ?” are just a few of the questions I am asked frequently.

Well, no,  you cannot just cancel it.   Let’s start at the beginning:  Before this started ( the mandatory health tax) in Jan 1995, people could choose not to be a member of a health fund (kupat cholim) and they weren’t insured. Each fund had it’s own criteria and could accept members, or not, according to their own criteria. These included past medical history, so for example, someone who had diabetes would not be able to choose which fund they wanted but were only accepted to Klalit.

The other thing was that each fund had different rates that were based on the member’s gross income. There were problems with this system too. If both husband and wife worked they paid more than if only one of them worked.
Let’s say that someone was wealthy, but was doing internship as a lawyer  and thus making minimum wage, they would pay the minimum where someone else who made a bit more than that and maybe wasn’t as wealthy might pay double what the wealthy intern was paying.

Many people would forge payslips in order to get reduced rates.

The Health Ministry by introducing the mandatory health law put all of this in the past. Everyone who has Israeli citizenship must have a health fund. You can choose any fund and they must accept you. Today this is done simply by filling out a form at your local post office with your teudat zehut.
The basic coverage is deducted from the salary and transferred by the employer to Bituach Leumi each month. Each fund has additional coverage packages that are optional and one needs to sign up via the fund directly. payment is between you and the fund and there is no connection to your employer or your payslip.

The problem is that these additions are not cheap, but without them you will not get very much insurance at all. The basic insurance covers only what is specified by the law. (the coverage is updated from time to time – usually when the state budget is passed in the knesset)

So, in a way- Yes it is a double tax. If you work you pay, if not, not. However it is mandatory and not optional. If both Husband and wife are working you’re both paying, if only one works, the other is exempt from payment, either way you get the same coverage.

Employees that are Foreign workers or receiving an old-age stipend from Bituach Leumi are exempt from paying the health tax via payroll. (As opposed to Kupat Cholim payments which are a type of Insurance and non-payroll related. – contact your local Kupat Cholim for rates, etc)

Bituach Leumi is Social Security. The months that you work ensure that you procure credit for them via the deductions from your salary.

You are buying coverage for the following:

  • old age stipend (Women from age 62 and men from age 67)
  • work-related accident
  • maternity leave
  • employer bankruptcy
  • loss of work ability stipend
  • unemployment
  • health insurance
Each of the above have specific criteria, who is eligible and under which circumstances (see Bituach leumi’s website for more information: http://www.btl.gov.il/English%20homepage/Pages/default.aspx)
Both employer and employee contribute towards the health tax and social security as a pro-rated percentage based on the total gross taxable salary.
The percentages differ between age groups (under 18, 18-62, 62-70, 70 +) as well as between foreign residents and Israeli citizens.
Anyone who is receiving an old-age stipend is exempt from both the health tax and social security.
There are two levels: The lower level is up to 5,171 sh gross (updated Jan 2012) and the percentages are listed as follows (lower rate listed first higher rate (over 5,171 sh and up to a ceiling of 41,850 sh monthly).
Age                                                              Social Security   Health tax Who pays
18 – retirement age 0.4 %  / 7 % 3.1 % / 5 % employee
18 – retirement age  3.45 % 5.9 % employer
up to age 18 or above retirement age and receiving old age stipend 0.38 % / 0.93 % exempt employer only
From retirement age – (but not receiving old age stipend) 0.27 % / 4.86 % 3.1 % / 5 % employee
From retirement age – (but not receiving old age stipend) 3.15% 5.38% employer
Above old age stipend age  (but not receiving old age stipend) exempt  3.1 % / 5 % employee
Above old age stipend age  (but not receiving old age stipend) 0.38 % / 0.93 % exempt employer
Foreign employee  0.04 % / 0.87 % exempt employee
Foreign employee  0.49 % / 1.17 % exempt employer
Employee on non-paid vacation 6.57 %  from min wage exempt employee
These are Social laws that enable most employees to be eligible for a series of possible stipends for events that can occur during a lifetime.
Although Bituach Leumi is still far from a service-oriented organization, at least today they have computers. I guess that in itself is a huge accomplishment due to the work-ethics and culture in Government agencies and the educational background of their employees.

 

 

 

Employer’s expense to rise over next 3 years !

Moshe

Change in Employer’s contribution to Social Security

 

As part of “the law to reduce the national deficit and change in the burden of taxes”, which was published today – August 13, 2012, a raise in the employer’s contribution towards Social Security has been authorized for the next 3 years, as follows:

From the higher level (on the part of salary over 60% of the average wage)

In 2013 – 6.5%

In 2014 – 7%

In 2015 – 7.5%

 

The current rate in 2012 is 5.9%.

This does not include employees who are pension-age, receiving a old-age stipend from Social Security or foreign workers or employees under age 18.

Employee’s rights on employer’s bankrupcy

Moshe

The law protecting employee’s rights in bankruptcy or liquidation of a corporation.

The law for security of employee’s rights when an employer goes bankrupt or when a court verdict orders the liquidation of a corporation came into being in 1975, in order to protect employees whose rights have been compromised due to difficulties the employer has come into and as a result of these difficulties a bankruptcy or liquidation order has been issued by a court of law.
This law is defined specifically in Chapter 8 of the Social security law.

According to this law, a salaried employee whose employer has declared bankrupcy or the company he has worked for has been liquidated, is entitled to payment for salary and severance pay that the employer owes him, up to the ceiling of the stipend as determined by the law. The employee is also eligible  that Social security transfer monies owed to his pension or savings plan if the employer has not deposited the required amounts owed (all or some).

 

Who is eligible ?

  1.  Salaried employees that their employer has declared bankruptcy or salaried employees that a court has issued a liquidation order against their employer (provided the employer is a corporation)
  2.  Pension/ Gemel fund if the employer owes money to a fund that the employee is ensured with.
  3.  Member of a co-operative who has been a member of a Kibbutz or a collaborative Moshav for at least 7 years
  4. An employee’s next of kin if an employee passed away before the benefit owed him was paid, his next of kin are eligible to receive the debt for salary and severance pay.
  5. Foreign workers / Yehuda – Shomron workers are eligible provided they have legal and valid work permits and visa. Illegal aliens are not eligible.
Note: An update to this law states that in projects that occurred from Jan 1, 2004 employees with controlling interests in a company are not eligible.

 

Conditions of eligibility

The benefit will be paid to a salaried employee if the following conditions are met:

A) A District court has issued a bankruptcy order or liquidation order to a company, co-operative, collaborative or Non-profit organization.

B) A district court has appointed a Trustee or liquidator to above.

C) The details of the employee’s claim have been acknowledged by the trustee or liquidator of the company.

 

How is the benefit calculated ?

An employee whose employer has been issued a bankruptcy order or liquidation order is eligible to receive a benefit from Social security, which includes amounts of salary owed him, that haven’t been paid by the employer and also amounts of severance pay that have no coverage in a pension / Gemel fund.

The benefit will be paid up to a ceiling of 79,750 sh for court orders issued up until July 31, 2009 or 103,675 sh for orders issued from August 1, 2009 onwards.

The amount of the benefit will include linkage from the date the debt was incurred until the payment date by Social security.

 

Salary items that are taken into account

  1.  Salary: according to section 1 of the protection of salary law that hasn’t been paid by the employer to an employee until the date he ceased work.Itemized salary that will be taken into account include: Base salary, overtime hours, premiums, bonuses, commissions, and any additions that are paid due to effort, or  departmental or professional reasons.The salary to be taken into account will not be less than minimum wage owed the employee according to his percentage of position (full-time, part-time). A benefit that is calculated according to minimum wage will be calculated for a period of up to 12 months.
  2.  Buyout of accrued vacation day balance: payment for the number of accrued and unused vacation days up until the date he ceased work, as they appear on his last pay slip, up to the maximum number of days that can be accrued by law and subject to the Annual vacation law. 
  3. Havra’a (convalesence pay): the part that was not paid to the employer up until the date he ceased work and for the last two years.

  4. Clothing stipend:  the part that was not paid to the employer up until the date he ceased work and for the last year (relevant only in places of employment where this stipend is paid – usually public sector only)
  5. 13th salary: the part that was not paid to the employer up until the date he ceased work and for the last year (relevant only in places of employment where this stipend is paid – usually public sector only)
  6. Value of advance notice: employees whose employer did not pay them the value of advance notice will be eligible to receive as part of the benefit, according to the Advance notice for termination and resignation law (2001).
  7. Employer’s portion towards pension: employees whose employer did not open a pension plan for them as required by law are eligible to claim the employer’s portion of 6% of the base salary and for a period that will not exceed 12 months after employer-employee relations were severed.Note: Any other itemized items on the payslip can be included as well, as long as they fit the definition of salary. Items that will not be included in the calculation of the benefit (for example) refunded car or telephone expenses, etc.
How do I apply for the benefit

The claim for a benefit is to be sent to the court-appointed Trustee or liquidator only and not to Social Security on a form 5305/bl (original only) along with documents to back up the claim. The form is available online on Social Security’s website: www.btl.gov.il or at  Social Security’s Head office in Jerusalem –  branch office (located behind Binyanei Hauma – 13 weizman st. Tel 02-6463020).

The appointed trustee or liquidator has approved the claim he will send it to Social Security’s head office.

Applications for claims relating to pension /gemel funds are to be submitted to the trustee or liquidator by the fund.

 

Tips

  • Always keep a copy of all documents for your own records
  • Never submit original documents, make photocopies of payslips, contract, etc to attach to the claim.
  • Send the claim to the trustee /  liquidator via registered mail with proof of delivery or submit in person and get them to stamp your copy “received” with the date on it.
  • Social Security recommends filling out the claim form in detail and accurately in order to avoid unnecessary delay in processing your claim.

 

Source:  Social Security (Bituach Leumi)

 

 

How to understand your payslip – a guide for the perplexed

Moshe

Here is an explanation of the Israeli payslip for the perplexed: Broken down into color-coded sections. This article was a guest post I wrote for www.israemploy.net in 2010.
http://www.israemploy.net/The_Israeli_Pay_Slip_/

The Israeli Pay Slip – An in-depth Explanation for the Perplexed

For those of you that are working in Israel, or have worked in the past, trying to decipher your pay slip is one of the most complicated things you will experience in the workplace, right up there with understanding how to use the coffee machine.

We are fortunate to have Moshe Egal-Tal available to provide us with a comprehensive article about the intricacies of the pay slip, so that you can better determine how you are being compensated, and confirm that there are no mistakes.

As with most things, payroll is much more complicated in Israel than in other countries. In January 2009 a new law was passed to ensure uniform mandatory information that must be specified on all pay slips.

All of the payroll programs in Israel (which generate the pay slips) must be approved by the tax authority that they meet the mandatory requirements as defined by laws and regulations. Regardless of the program your employer uses, all the programs have common attributes. The layout and placement will differ a bit from program to program, but there are basic requirements that are mandated by law. The purpose of this article is to familiarize you with the terminology and help you understand what is printed on your pay slip. For those of you working, it is highly advised to examine your pay slip each month in order to ensure that there are no mistakes. Understanding what was paid/deducted from your pay is critical and to your benefit.

There are payroll programs for the PC that are off-the-shelf software (as is) that are commonly used by small employers / CPA offices who run payroll for their clients. There are also more complex programs that use a large number of variables that are user-defined by the employer. These programs are usually used by medium-sized and large companies. The PC programs generally allow printing pay slips on plain paper or pre-printed forms, which are more costly and as a result many employers are reluctant to use them. A plain paper pay slip is legal as long as it contains all the data required by law and as long as it is signed and has the company stamp on it.

The Makeup of the Pay Slip

The Israeli pay slip is made up of several sections (see Appendix for example):

· Specific information (header)

· Payments (tashlumim)

· Mandatory deductions (nikuei chova)

· Voluntary deductions / commitments (nikuei reshut / hitcheivuyot)

· Informatory information / accumulated sums (meida klali / mitstabrim)

The Specific Information Section (or header) (see sections #1, #2, and #7 on the demo payslip below) contains the employee’s name and will usually contain the name and/or number of the department/project where the employee works. Typically the employee number is also listed and the employee’s teudat zehut number and home address.

The pay period is also listed, for example: March 2010. The employer’s name, address and tax identification number and the employee’s bank account details and start date. If you work in the public sector, you will also have your pay table and rank listed as well as your % of position (full-time [100%] or part-time). There will also be a detailed account of your vacation and sick days; balance at start of pay period, credit for the pay period, debit for the pay period (how much you utilized) and your new balance.

The Payments Section (see #3 in red on the demo pay slip below) contains an itemized breakdown of all the components paid to the employee for the pay period. For example; Base pay, travel expenses, overtime hours, etc. Also in this section will be any tax value components (Holiday gift, company car or any other benefit that isn’t paid in money). The total gross pay will also be listed at the bottom of this section.

The Mandatory Deductions Section (see #8 in light blue on the demo pay slip below) contains an itemized breakdown of all deductions that are mandatory by law.

For example; Income tax, Social security, Health tax and mandatory pension payments. These are the employee’s part and as such are deducted from the total gross pay. The total of all the mandatory deductions will also be listed.

Some programs have added underneath the itemized breakdown of mandatory deductions, the employer’s part for any pension or savings funds or health insurance that the employee is entitled to. Other programs detail this in the informatory information section. The law stipulates that this must be detailed on the pay slip, but not necessarily where. It is usually categorized with an underlined or bolded headline or in a pre-printed field.

The Voluntary Deductions Section (see #10 in orange on the demo pay slip below) contains an itemized breakdown of all deductions that are voluntary.

For example; advances on payroll, repayment of loans to employer, charges for purchases to employees from a company store/collective purchase, payment for subsidized vacation or any other social or cultural events sponsored by or promoted by the employer which entail a cost to the employee or money deducted from an employee for loss or damage to equipment. The total of all the voluntary deductions will also be listed. This total amount is also deducted from the total gross pay.

The Informatory Information Section (see #4 in bright green on the demo pay slip below) will contain the monthly gross pay for tax and social security purposes and the monthly gross base pay for pension.

This section also will contain various informative details: total accumulative gross pay for the current tax year, number of actual days worked in the pay period, total number of potential work days in the pay period, the employer’s tenure is usually listed here as well. The employee’s tax credits as well as the value for each credit will be listed as well as a detailed account if there are any special tax benefits (oleh chadash, discharged soldier, national precedence area, etc) or a tax coordination was done.

The footer of the Pay Slip (see #4 in bright green on the demo pay slip below) {note: On this payslip this section is incorporated as part of the Informatory section} will contain the amount of days for tax purposes for each of the months worked. Monthly salaried employees will see 25 for each month worked, although there are payroll programs that put a check mark near each month worked.

The employee’s marital status and number of children under 19 years old will also show up here or in the specific information section. The employee’s marginal tax percentage and the accumulative amounts for the employee’s part of each of the funds/savings plans and whether the employee’s spouse is employed or not is included as well.

The minimum wage must also be listed (monthly and hourly rates). This section will usually have the total gross pay, total deduction, net pay, total voluntary deductions and pay in the bank listed.

Income Tax (will show up in section #8 in light blue, on the demo pay slip below)

The 2010 tax brackets are as follows:

Up to:

4,590 shekels 10%

8,160 shekels 14%

12,250 shekels 23%

17,600 shekels 30%

37,890 shekels 33%

Every additional shekel 45%

The tax is configured anew each month on an yearly-accumulative basis which takes into account all payments paid by the employer since January of the current year and after configuring the tax, the accumulative amount of tax that was paid is deducted and the remainder is the tax for the current month.

This is easily explained via the following example: for the first 3 months an employee earns the same gross pay. In the 4th month he receives a 3,000 shekel bonus. Obviously this will raise his taxes for this month. Occasionally, employees receive a tax rebate on their payslip via the form of a negative sum of tax.

Tax Credits/Points

All employees are eligible for tax credits (each worth 205 shekels – JAN 2010). The tax credits are allotted as follows: Every employee 2.25 points, Female employees an additional 0.50 points Single parents who have care of children under 19 get an additional point for each child and a half of a point for children the year they were born or the year they turn 19. There are other instances where employees may be eligible for extra tax points, but these may be given by the employer only upon written instruction by the tax authorities. Examples are: handicapped children, invalids, crippled or blind employees.

Consult the Israel Tax Authority’s web site for more information: (the total # of tax points will show up in section #4 in green on the demo pay slip below)

Social Security (Bituach Leumi) (will show up in section #8 in light blue, on the demo pay slip below)

Social security is mandatory for all female employees between 18 – 62 and male employees between 18 – 65. There is an employer’s portion and an employee’s portion. The money insures an employee against bankruptcy of the employer, reserve army duty, unemployment, old-age stipends, work-related accidents, just to name a few. For the first 4,806 shekels the rate for the employee is 0.4%, anything over this is calculated at 7%.

Mandatory Pension (will show up in section #8 in light blue, on the demo pay slip below)

The mandatory pension law went into effect in Jan 2008. All employees who either have an existing “live” pension plan from a previous employer or anyone with tenure of 6 months are eligible for pension. In 2010, the rates are: 2.5% employee, 2.5% employer and 2.5% severance pay (employer). The employee’s contribution is deducted from his payslip and must be deposited to the fund of the employee’s choosing.

Appendix

Explanation of the Above Demo Pay Slip: (click on the image to enlarge it)

1. Employer’s Information (name, address, tax i.d. #)

2. Employee’s Name and Address

3. Payments Section (itemized and total of all gross payments)

4. Additional Information, annual accrued totals and vacation and sick pay balances

5. Space reserved for notice to all employees such as “happy Holiday” (see example above), or personalized message for specific employee(s) such as “Happy Birthday”

6. Information Regarding this Pay Slip (the pay period and date the pay slip was printed)

7. Personal Information (Israeli ID #, basis of employment (monthly/hourly), bank account details, tenure, start date, marital status, etc)

8. Mandatory Deductions (itemized and total)

9. Net pay (prior to voluntary deductions)

10. Voluntary Deductions (itemized and total)

11. Net Sum Transferred to Employee (bank account/check)

Old Age Stipend – Social Security (Bituach Leumi)

Moshe

Old Age Stipend – Social Security (Bituach Leumi)

Submitted by Moshe on Mon, 26/07/2010 – 09:23

 

In response to many recent questions, following is a short and very general explanation.

A detailed and thorough explanation is available in English on Bituach Leumi’s website:
http://www.btl.gov.il/English%20Homepage/Benefits/Old%20Age%20Insurance/…

In general, there are mnay conditions based on age, sex, marital status, for olim – their age when they made aliyah as well as total gross income.
The old age stipend is one of the most important branches of insurance in the social insurance system in Israel and is part of the social benefits detailed in the Social Security Law (Bituach Leumi).
It’s purpose is to ensure a monthly income to Israeli Residents who are eligible in their retirement years.

The old age stipend, as defined by the Social Security Law, makes eligible Israeli residents who have reached the eligible age, provided they have been insured at least the minimum time as defined by the law and the insurance money has been paid for them.
There are two ages defined by law: retirement age and entitlement age.

In instances where an employee goes on early retirement (before old age) they may be eligible, depending on their total gross income (excluding pension payments).
When a person reaches the old age defined by law, they are eligible regardless of their gross income provided they meet the other criteria.

Both the retirement age and entitlement age are defined specifically by the Social Security Law, and they are different for men and women. Up until June 30, 2004 retirement age was 65 for men and 60 for women. Begining July 1, 2004, the law redifined the retirement age for men to 67 and 64 for women.
Because of this change in the law, Men who were born between 7/1939 and 4/1942 and women who were born between 7/1944 and 4/1953, the age is gradual. (see the chart on Social Securty’s site)

The site is very informative and also has instructions as to how to file and what documents are needed.

Everything about Social Security Payment Co-ordination

Moshe

What is Social Security Payment Co-ordination ?
This is called Teum Dmei Bituach Leumi in Hebrew. There are two stages for calculating Social Security and Mandatory Health tax that are automatically deducted from employees’ gross pay. The first stage or reduced rate is 0.4% for Social Security and 3.1% for Health Tax up to a ceiling of 4,809 shekels (Jan 2010)
Any income over this amount, the deductions rise significantly to 7% for Social security and 5% for Health Tax.
If someone is employed by several employers, they will need to have a payment co-ordination done (in addition to the better-known tax co-ordination) in order to avoid paying the higher rates from the first shekel for income earned from the additional employer, as it is possible that there is unutilized portion of the 4,809 shekels that the additional employer can use for the reduced rates.

Who needs to do s.sec co-ordination ?
If a person is employed by more than one employer they will usually need a s.sec. co-ordination.

How do i get a Social Security Co-ordination ?
Up until Dec 2009, anyone who declared on their annual 101 tax form that they have additional income, was required to apply at their local Social Security office for a Co-ordination. If the employee didn’t bother doing it, the employer automatically deducted the higher rates from the first shekel.
Do to a change in the Social Security laws, effective January 1, 2010, the additional employer is allowed to do the co-ordination himself, on several conditions, thus eliminating the need for the employee to take time off work and go in to the Social Security office.

What are the conditions that allow an additional employer to do the co-ordination ?
1. The employee must fill out a declaration via a 644 form (available on the Social Security website – www.btl.gov.il)
I advise using the Hebrew site and not the English as the form doesn’t appear there yet. It is a PDF file that can be downloaded.

The 644 form is a declaration which states the employee’s last gross pay from his main employer.
note: if the pay is over the ceiling (4,809 shekels) this is irrelevant as he has utilized the full amount at the reduced rate and therefore all pay from the additional employer will be at the higher rates.
2. If the employee works for more than 2 employers or he earns more than 75,000 shekels per month, he will need to apply personally at the Social Security office and this form is irrelevant for him.

This declaration needs to be renewed annually along with the 101 tax form and tax co-ordination forms.

What happens to the money I overpaid in previous years ?

While there is a chance that you paid too much money via the Social Security and Health Tax deductions on their payslip from the additional employer, this needs to be checked out individually. You will need to write a letter to Social Security requesting a refund.

How can I know if I was overcharged ?
It is advisable to have this pre-checked by a payroll professional. This is one of the paid services Israpay offers. Interested employees should send an email toMoshe@Israpay.com with their name and contact information

Risk Pregnancy (Shmirat herayon)

Moshe

If a woman is diagnosed by her doctor to be in risk pregnancy, under certain conditions she may be eligible for a stipend from Social Security (bituach leumi).

Section 58 of the social security law defines risk pregnancy that entitles insured women to risk pregnancy stipend; absence from work during pregnancy due to medical condition that stems from pregnancy and endangers the woman or her fetus.

The conditions are:
1) Doctor’s note which explicitly states that the woman is in risk pregnancy.
2) the woman is absent a minimum of 30 consecutive days from work due to this condition.

The woman is entitled to continuous deductions to any and all social benefits (kupot gemel, keren hishtalmut, pension plans) provided she pays her part.

Most employers continue the payments and collect the employee’s part when she returns to work after maternity leave.

This period of time is considered to be continuous work period for tenure, social benefits. In other words, employer-employee relations are still in effect.

Forms for application and more information is available on the Social Security website:

www.btl.gov.il

Women who received maternity leave pay may be eligible for more

Moshe

If you meet all the following criteria you are probably owed more money from Social Security.
But, of course they won’t notify you of this.

The criteria are:
1) You gave birth in the last year.
2) You are salary employed.
3) You have returned to work from your maternity leave.
4) You have received an annual payment (on your payslip) since you returned to work.

An annual payment is a payment that is a once a year payment, such as Havra’a stipend, Clothing stipend, Car insurance reimbursement, A yearly bonus or any other once-a-year payment.
These payments are usually withheld during maternity leave since the employee doesn’t get paid, and therefore would be paid immediately upon return from maternity leave.

The process is pretty simple and doesn’t involve much. It may be worth hundreds or thousands of shekels to you.
You need to act soon before a year passes.

You would need to write a letter to your local Social security office stating that you recently returned to work after maternity leave and were paid an annual payment on your payslip and therefore should be eligible for addition stipend for Maternity leave.
It is highly recommended to make a copy of the letter for your records and send it via registered mail or hand-deliver it and get your copy stamped “received” with a date on it at the reception desk.